i'm jim cramer and welcome to my world. you need to get in the game. firms are going to go out of business and he's nuts! they're nuts! they know nothing. i always like to say there is a bull market somewhere. "mad money." you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica.

my job is to entertain and educate and teach. call me at 1-800-743-cnbc. we hear these ironic stories about stocks on the move. and we call them what the hecks. we do these stories when people are baffled that a stock could be going up so much. given the serious concerns that a company seems to be facing. as in what the heck is that stock doing up here? we ask, what the heck is going on with these darn averages? given that we could be falling off the fiscal cliff in less than two weeks time? first, i think there has been a

change of heart in washington. the rancor seems to have cooled. perhaps as the new york times said today as the tragedy in connecticut has softened the times. maybe it takes something like this to get the congress and the president to work on things. there does seem to be a spirit of compromise now brewing. i'm not just talking about the end of the year, but any time. the president perhaps holding off raising taxes for those who make $200,000. especially when coupled about this rumored embrace about spending cuts. that could turn the fiscal cliff into a fiscal hop, skip and a

jump that ends up in an exciting place. there are other forces at work today that show you the magnitude of what a deal could mean for our great country. the other forces? the transports, banks, u.s. treasury bonds and gold. first, you know i like to watch the transports as a measurement of economic activity. you know it has to be shipped somewhere to be sold. that is why i follow the transports so closely. when they are going up it means there is more commerce happening than thought. planes, trains, truckers and shippers going higher, that above all, is a terrific predictor of growth.

today the transports showed signs of growth. i got more negative. a real break out. that would be a signal of a genuine expansion on the rise. the action signaling that could happen. second, the banks are now breaking out of the ranks with the transports. look at the xlf. that is a exchange trade fund. this group is moving to the upside. one that is necessary if we are going to see a legitimate and lasting recovery. it looks like it has had a big run. it is still less than half of where it was a few years ago. we will look at the trading in goldman sachs. it has been lured back to life. that is the case with bank of america. just to get caught up with the

rest of the market is a catch up trade. third, i was asked to name the biggest surprise. i know i dazzled people. i think interest rates are going to go up. maybe big. you better lock in a mortgage right now if you can. i know it is counterintuitive given what the fed chief said but i'm thinking that the fed chief may not be able to stop this. it won't please anyone, particularly the ratings agencies, but we have all learned from europe and the debt debacle from last year that the downgrades, let's just say, they aren't that worrisome, now you don't want to be borrowing trillions of dollars, but

remember, a deal without severe belt tightening will be good for the economy. that means rates can go higher and when you combine that with the billions that we spent after hurricane sandy you can see why rates are going down. it will produce a ton of jobs as spending has been held back while we waited for washington. certainty beckons and you want to be involved in the markets ahead of the certainty. that is why this is a rally in anticipation of certainty. hence why the banks are going higher. and they can loan out your money what you were getting on your cds and your savings account. which brings me to gold. lots of people think when you buy gold, you do it because inflation is about that. i think the recent move down in gold confirms that interest rates are going higher.

gold may have yet further to fall. i still like gold. so to sum it up, you are asking what the heck is this market doing running up ahead of a no deal near term? the markets are telling us we will only get some agreement on the budget and taxes. sure, our debt will get downgraded like it did last year, but maybe that is the price our government is willing to pay to get this economy moving again. here is the bottom line, it looks like they are rising above politics and it looks like they are going to give us a package that is good for business. that is surprising. last week we thought that was unlikely. i mean this thing is fluid.

if we bridge the fiscal cliff, without too many spending cuts and tax increases, we could have a very good 2013. that is why the heck the stock markets rally. let's go to mark in pennsylvania. >> hey, jim, thank you for having me on your show. i'm a long-term investor with the short-term trading around a core position. um, you know, the stock only a half percent up today, down close to a full percent. the board approving coca cola enterprises, big news today with a repurchase program, and you know, we saw that go up 4.5%. my question to you, is there any relationship between coca cola enterprises and european market? >> not that much.

they have specific things that are positive. my charitable trust owns it. it is why we play am i diversified. coke is the ultimate defensive stock. it can not rally in an environment where people think the economy is going to pick up big. let's go to mike in pennsylvania. >> big booyah from shippensburg university. >> what is going on? >> peabody energy. in 2011 australian mining of its growth. operations contributed to half of its growth. recently extreme policies undermined their mines. coal had the highest growth rate in 2001. >> remember, in the end it is

still coal. and it is on the decline. and i do believe the stock could be troughing, but if that is the case, why not buy joy global? it is a truly international company, and it is more likely to be acquired if it stays down here forever. they have a terrific book of maintenance that people don't talk about. i regard it as much cheaper than btu. skip in new york. >> booyah welcome to my world. i have glaxo? what do you think about glaxo? i think they came out with a new flu vaccine. >> we talked about these companies that aren't going to take off in an environment where people are getting bullish about

2013. what the heck is going on with this market? if we bridge the cliff without too many spending cuts and too higher taxes, i got to tell you that may be nirvana for 2013. "mad money" will be right back >> coming up, unlocking the vault. tonight cramer is opening the doors of goldman sachs. is there growth ahead or is it time to cash out all together? cramer is pitting the technicals against the fundamentals on a new edition of off the charts. and later, digital doctors? as medical records move towards the 21st century, how do you play the intersection of data and doctors. cramer examines this trend, just ahead.

>> plus, gold mine? populations rising, energy demand increasing. the world is demanding more resources than ever, pushing development to the earth's extremes. cramer is revealing the company with the solution that could be a takeover candidate. all coming up on "mad money." >> don't miss a second of "mad money." follow @jimcramer on twitter. tweet cramer #madtweets. send jim and e-mail or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.

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how can you tell the difference between a rally that's played out and one that is just getting started? take goldman sachs. the stock jumped $4.28 and it is a point off its 52 week high.

are we looking to start a major start off or is this a balance that will last for a couple more months? tonight we are trying to answer that question. i'm not a chartist. i pick stocks based on the underlying company. what does bob lang have to say about the action? he thinks the technical picture is downright beautiful. he thinks it is like the metropolitan museum of art. when you look back two years, goldman is still down.

you have to. however, he believes that the stock is ready to come back with a vengeance. goldman has made what lang describes as a great looking w bottom pattern. it looks like a w. this is one of the most reliably bullish patterns. it tends to move up sharply. it is seemingly about to begin. today, goldman broke out above an important ceiling at $125. if goldman crosses the $140 line then lang thinks it can run up

to the $170 area. goldman had a big rally over the summer. it was building a base. that base was a springboard for it to go higher. goldman is now above all of its key moving averages. it is above all of them.

when you look at the volume, it seems people have been buying goldman pretty aggressively since the beginning of december. the volume has been very strong when the stock was up. institutional players are taking it. and that provides fuel for stock to go higher. this is called the moving average convergence/divergence. i call it the mac d.

technicians use it to detect shifts in a stock's trajectory ahead of the actual stock. it is telling that goldman that he has a lot more room to run. the black line goes above the red line. we have one of these crossovers right at the beginning of september. and that is when goldman rallied over the next two weeks. this is why you can see it is encouraging that we just got another one of these crossovers. i'm liable to start a fire.

the morning after president obama was reelected, goldman gapped down. i don't really need this. and that was a significant gap, all right. but the stock recent run has now filled in that gap. and lang considers the rebound to be a very bullish sign. that is an 18% move from where it is. here is my view. what drew me to goldman sachs has nothing to do with the chart. they are so far behind the rest of the stock market.

the world's economies are beginning to strengthen and confidence return to the marketplace. despite being the best of the breed, it is quite inexpensive. but not even one times book which is the cash on hand. when it comes to buying back stock, goldman knows what it's doing. here is the bottom line. the charts and fundamentals are in agreement. i'm not a technician but i think it could go back here.

take down some shares in the best that investment banking has to offer. >> coming up. please fill out these forms and then the doctor will see you. but as medical records move towards the 21st century, cramer looks at this trend ahead.

when the facts change you need to re-evaluate your opinion. that is why tonight i want to do a speculative review with the stock that i recommended a year ago that's given us tremendous gains. back in december of last year i told you to buy ssc health solutions. we like pharmacy benefit managers because using their

bargaining power they save money on prescription drugs. you have two big players. one of the reasons i got behind sxc was it would consolidate, grow the business and give it more scale. the company had a health care information technology business. they would use their software platform by selling it to other pbms and acquiring the ones that seem to be doing the best. the company no longer existed. when the smoke cleared, it was no more.

transformational merger. let's just say, because catamaran still has a terrific story, it still remains the fastest growing in the business. that is how catamaran won target as a client. the company is still a fast

growing pharmacy benefit manager. when branded drugs go off patent, the margins of pbm will soar. with tens of billions of dollars worth of brands going generic each year. scale is vital to these claims. the bigger you are, the more bargaining power you have. catamaran has that great information technology business. and on top of that, i think it

could be an attractive takeover target. health spring's contract it will run out it goes until 2014. we are going to get the news pretty soon. as health spring was acquired by cigna earlier this year. if cigna decides to cancel the contract. i wanted to get ahead of the analysts here. the cigna thing could be used to downgrade catamaran and that

could cause it to get hit. you should never let a gain be turned into a loss. we nailed a gain here and i don't want to give up that if they lose a large client and some analyst decides that the stock is time for it to go. take out your initial cost basis. bulls make money, bears make money, but pigs, they get slaughtered. i say bring home the bacon rather than become the bacon. one is a heck of a lot better than the other.

>> call sign baby. i think this is a fantastic stock. what do you think? i haven't looked at the stock in many years, better for me to tell you i don't know the stock. ken in pennsylvania. >> hi, jim, how about a new york jets booyah. >> wow, you have to be the only one other than seth ryan. summit high's own. but go ahead. terrific franchise. what's up? >> my question is about workday. i bought it on the way up. and how good of a company do you think it is? >> i think it is good.

i have to tell you, in the darkest moments people abandon this one, salesforce.com. i think that is a better situation but i like the workday business. let's go to mike in massachusetts. i guess you are a jet, fan not a patriot fan, right? >> i'm always a pats fan. they manufacture screens for iphone and ipad. the stock has gone done a bit but i haven't heard anyone mention a company. >> i think it has had a good move. we have a couple of good days happening here.

you take a stock like skyworks solutions. that is a cheaper stock. i'm going to say let that one come in. no need to chase that one. when the facts change you need to revisit them. catamaran is up and i am worried that the profit taker is going to come in. why don't you get ahead and take something off the table right now. don't move, the lightning round is coming up next.

it is time for the lightning round. are you ready? it is time for the lightning round. let's start with howard in new york. >> booyah. symbol x, u.s. steel. i would like to add it to the portfolio. >> look, i think there was a deal in how we need this tubing that they make. but nucor today said things

weren't looking that good and the stock is still up. that tells me, nucor is a better bet. jeff in san diego. >> honeywell. >> the stock hit a 52 week high today. let it come in. let's go to steve in michigan. >> booyah jim. my stock is cleveland cliff. it is paying about a 7% dividend. is it a value trap or a buy? >> get out by year end.

let's go to mike in california. >> booyah from san luis obispo. i'm a first time caller. thank you for making it about the market. i bought hca. >> i think the situation is getting better. if i want healthcare i would prefer to be in bristol myers. i like to sleep at night. i understand why hca people are coming back because of health care. ed in new york. >> thank you for taking my call. i was wondering about groupon as a speculative play. >> i'm wondering about what deal they gave me today.

they have a lot of deals i'm not crazy about. my take is that it is not a great stock. it could rally. let's go to randal in california. >> hello mr. cramer. sandridge permian trust. thank you for introducing it on your show. >> i was going over these oil trusts. we know that every single one of them is going down. people are saying that sand ridge is having a tough time.

and that is the conclusion of the lightning round. >> coming up gold mine? the world is demanding more resources than ever. the need to keep these workers safe is paramount. cramer is revealing the company with the solution just ahead. and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense.

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heart-healthy, whole grain oats. you can't go wrong loving it. the market may be all euphoric today based on the hope that our leaders in washington may come up with a deal on the fiscal cliff.

if they can't arrive in time, someone might panic then. let's focus on a company that may get cheaper if we don't get a deal. there are two ways to value any company. that represents what traders and investors are willing to pay for a piece of the company. i want to tell you a tale about a company that could be in the cross hairs of and acquirer. and the company i'm talking

about is mine safety appliances. it makes protection devices. that is a lot of stuff that you need to do in the oil and gas industry. mine safety is a misnomer now. they do business with fire departments, oil and gas companies, as well as law enforcement agencies and the military. why do i think that mine safety is to be acquired? take vng come on, safety never takes a vacation and no one ever skimps on it.

mine safety sold the body armor business. honeywell is the safety division. what do we get? this is part of the safety division. dupont has a safety division. $53 share stock. $41 price tag today. both honeywell and dupont want to add to their safety offerings.

honeywell paid $1.4 billion to buy sperion. they invented kevlar. in 2008 dupont bought cardinal health industrial apparel. it is one of the tenets and both of these companies are clearly open to doing more deals in the safety space. company reported at the end of october. the fundamentals are stronger than the headlines would lead you to believe. the overall gross margin

increased by 220 basis points. you can't cut back on fire and safety. plus mine safety has been moving away from dependence on defense spending. something that is not happening a moment too soon. the non military business made up 64% of the company's latest quarter. they are moving in the right direction. remember, we never recommend stocks on the basis of takeovers unless the fundamentals are improving. i think mine safety is getting to a much better position. here is the bottom line. there is always money to be made speculating on takeovers if you do it wisely. when i play matchmaker i look for an industry that is consolidated. mine safety appliances gives you all of that.

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we still put such page in

we still put such faith in analyst comments that we should remind you they are just human. apple should be viewed in a larger context. now the stock that you are recommending that is in free fall before your very eyes and how you can't take it anymore. it is up 22 points low where the stock went out today. on november 25th, citi group rolled out its apple coverage with a buy. $571, the stock will give you a 20% return.

that is what they said. apple had a 28% correction, come all the way down from down there. it was still below the other price targets. in the end they said it was at a near term trough and seemed like a very good trade to them. the supply constraints may not be an issue after all. more than just a trade.

citi downgraded the stock, which caused the stock to trade briefly below $500 before the market opened. as articulated in our recent initiation, it was trading oriented. a near term rally. reflecting the expectations for a near term rally. however, near term supply chain bring into question the strength of the iphone 5. as such, we see the likelihood of a near term rally as diminished and downgrade the shares to neutral. they don't like it december 16th

at $509 the reason? too many iphones. hard to make this stuff up. the stock closed today at $534. what really happened here? i think the citi research team chose to be traders not analysts. stick with the fundamentals. that didn't happen here. the evidence that the i5 was selling well. this is very sobering, people. as the stock ran from $525 to $571 and created a short-term bottom right here. i think these pieces of analysis, i think they should be wake-up calls to you, about how

to use wall street research. take this advice at your own risk. do you do your own work? i like to buy low and sell high. in the end, that makes more sense than this research and frankly, that is all there is to be said about these two very lamentable calls. stay with cramer.